Question: The manager at Tiffany's Furniture Store is trying to figure out how much to charge for a couch that just arrived. If the couch was bought at a wholesale price of $97.00 and Tiffany's Furniture Store marks up all furniture by 70%, at what price should the manager sell the couch?
Answer: In order to find the retail price, we must first find the amount of markup. Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. With this knowledge, we can figure out the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $70\%$ is equivalent to $\frac{70}{100}$ which is also equal to $70 \div 100$ $70 \div 100 = 0.70$ Now you have all the information you need to find the amount of markup! $0.70$ $\times$ $$97.00$ $=$ $$67.90$ Since the markup rate is a percentage of the wholesale price that is added to get the retail price, we can find the retail price with the following equation: amount of markup $+$ wholesale price $=$ retail price $$67.90$ $+$ $$97.00$ $=$ $$164.90$ The retail price of the couch should be $$164.90$.